BB&T buying life, property/casualty operations of Crump Group for $570M

ROSELAND, N.J.—BB&T Corp. has reached an agreement to acquire the life and property and casualty insurance operating divisions of Roseland, N.J.,-based Crump Group Inc. for $570 million, BB&T announced Friday.

Winston-Salem, N.C.-based BB&T said it expects the transaction to add about $300 million in annual revenue to its Raleigh, N.C.-based BB&T Insurance Services Inc. unit.

The deal, which requires regulatory approval, is expected to close during the first quarter, BB&T said in a statement.

The $570 million purchase does not include Ascensus Inc., Crump's retirement services business.

Crump was No. 4 in Business Insurance's 2011 ranking of the top property/casualty insurance wholesalers.

BB&T was No. 7 in Business Insurance's 2011 ranking of the world's largest brokers.

“We've known and respected Crump for years and consider them an industry leader,” H. Wade Reece, BB&T Insurance chairman and CEO, said in a statement. “This is an opportunity for BB&T to become a significant and strategic player in the high-growth, high-margin life insurance distribution business and expand our property and casualty business.”

John Howard, president and CEO of Crump Group, will join BB&T Insurance operations in a senior leadership position and report to Mr. Reece, BB&T said in the statement.

BB&T's wholesale insurance operations include property/casualty broker CRC Insurance Services, managing general agent Southern Cross TAPCO Underwriters and managing general underwriter AmRisc L.L.P.